Abstract:Based on the panel data of 276 prefecture-level cities in China, this paper uses the dynamic Spatial Durbin Model to explore the impact of producer services agglomeration on environmental pollution and its spatial spillover effects. The results show that China’s urban environmental pollution has obvious spatial positive correlation. The diversified agglomeration of producer services not only inhabits the environmental pollution in the local cities, but also has a negative spatial spillover effect on the environmental pollution in the neighboring cities, and the long-term impact is greater than the short-term impact. The specialized agglomeration of producer services has significantly reduced the environmental pollution of local cities in the short-term and long-term, and the impact on the environmental pollution in the neighboring cities is not significant. Further research shows that the diversified agglomeration and specialized agglomeration of telecommunications, financial industry, real estate industry have significantly increased the environmental pollution in the local cities or neighboring cities. The diversified agglomeration and specialized agglomeration of scientific research, technical services and geological exploration industry have significantly inhibited the environmental pollution in the local cities and adjacent cities. The diversified agglomeration and specialized agglomeration of information transmission, computer services and software industry have only long-term effects and no short-term effects on the environmental pollution in the local cities and neighboring cities. The agglomeration of leasing and business services has an insignificant effect on the environmental pollution in the local cities and neighboring cities.